TAXWIZ 16 th January, 2021 www.swamyassociates.com swamy associates A nation, which is divided politically, socially and in every other aspects has been united economically by the GST, which is the single greatest achievement of GST. Co-operative federalism at its best. But it seems this unique fete is slowly withering away. It is understood that the Maharashtra Government has issued a circular, wherein it is stated that the circulars issued by CBIC would not be automatically applicable in the State, but would require a specific ratification from the State Government. The decision of the GST Council, not to levy GST on license fees paid to Govt. for manufacture of alcoholic liquor has been put into effect by Notification 25/2019 C.T. Dt. 30.09.2019 by laying down that such grant of liquor licenses is neither supply of goods nor supply of services, leaving the question open as to whether the same is applicable from 01.07.2017. The Jharkhand Government has issued a similar notification, specifically saying that it is effective only from 01.10.2019. Is the honeymoon between the Union and the States is on the wane?
Transcript
TAXWIZ16th January, 2021
www.swamyassociates.com swamy associates
A nation, which is divided politically, socially and in every otheraspects has been united economically by the GST, which is thesingle greatest achievement of GST. Co-operative federalism at itsbest. But it seems this unique fete is slowly withering away. It isunderstood that the Maharashtra Government has issued acircular, wherein it is stated that the circulars issued by CBICwould not be automatically applicable in the State, but wouldrequire a specific ratification from the State Government.
The decision of the GST Council, not to levy GST on license feespaid to Govt. for manufacture of alcoholic liquor has been putinto effect by Notification 25/2019 C.T. Dt. 30.09.2019 by layingdown that such grant of liquor licenses is neither supply of goodsnor supply of services, leaving the question open as to whetherthe same is applicable from 01.07.2017. The JharkhandGovernment has issued a similar notification, specifically sayingthat it is effective only from 01.10.2019.
Is the honeymoon between the Union and the States is on thewane?
• GST e-invoice system completed journey of 3 months; Enabledmore than 37000 tax payers to generate more than 1680 LakhInvoice Reference Numbers (IRNs).
• Central Excise collections shore up Govt revenues. Driven upby petrol and diesel sales, mop-up went up by 47% duringApril-November.
• Invoice Furnishing Facility (IFF) for Taxpayers under QRMPScheme
For User manualLink:https://tutorial.gst.gov.in/userguide/returns/index.htm#t=Manual_IFF.htm
For FAQ Link:https://tutorial.gst.gov.in/userguide/returns/index.htm#t=FAQs_IFF.htm
• Aadhaar Authentication / e-KYC for Existing Taxpayers on GSTPortal
Functionality for Aadhar Authentication and e-KYC whereAadhar is not available, has been deployed on GST CommonPortal w.e.f. 6th January, 2021, for existing taxpayers.
For User manualLink:https://tutorial.gst.gov.in/userguide/registration/index.htm#t=manual_aadhaar.htm
For FAQLink:https://tutorial.gst.gov.in/userguide/registration/index.htm#t=FAQs_aadhaar.htm
• Advisory on auto-population of e-invoice details into GSTR-1
The conjoint reading of the entry252A in the Notification 21/2002Cus dated 01.03.2002 as well asthe Circular issued by theMinistry of Finance and thedecision of the Supreme Court inDalmia Dadri Cement Ltd., it isevident that the expression 'foruse' means intended for use.
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3M/S GLOBAL EXIM 2021 (1) TMI118 - CESTAT MUMBAI
The Hon’ble Supreme Court inthe matter of Commissioner ofCustoms Versus M/S. AtulAutomations PVT. LTD., and ParagDomestic Appliances [2019 (1)TMI 1324 - SUPREME COURT] hasspecifically laid down that thereexist a fundamental distinctionbetween what is prohibited andwhat is restricted. In the presentcase also the absence of BIScertificate can’t make theskimmed milk power asprohibited goods and since thegoods in question are notprohibited, its completeconfiscation is not warranted.
Foreign currencies were takenby Appellants for businesspurpose without obtaining RBIpermission but not with anymalafide intention of exportingcurrency. Absolute confiscationset aside and ordered for releaseon payment of fine.
CUSTOMS NOTIFICATION – NON-TARIFF 01.01.2021 to 15.01.2021
NO DATE GIST
01/202104.01.2021 New Customs Authority for Advance Rulings
Regulations, 2021 notified and Customs(Advance Rulings) Rules 2002 rescinded.
02/2021
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DGFT NOTIFICATION- 01.01.2021 to 15.01.2021
NO DATE GIST
54/2015-2020
01.01.2021
The import of odoriferous preparationssuch as room fresheners/car freshenersthat do not operate by burning, under HSCode 33074900 is "free“.
55/2015-2020
07.01.2021
Some items classified under Chapter 41and 43 of ITC (HS), 2017, Schedule - I(Import Policy) is amended from"prohibited" to "free", but subject to WildLife Protection Act, CITES and compliancewith health protocol and sanitaryconditions prescribed by Department ofAnimal Husbandry.
ANTI DUMPING NOTIFICATION – 01.01.2021 to 15.01.2021
NO DATE GIST
01/2021 06.01.2021Levy of Anti-Dumping duty on Melamineoriginating in or exported from China PR,extended up to 28th Feb, 2021.
CONCRETE PRODUCTS ANDCONSTRUCTION COMPANY2021-TIOL-24-CESTAT HYDConcrete Sleepersmanufactured and sold toRailways. Railways reimbursedcost of transportation ofinputs, as per agreement,which was also added forvaluation purposes forpayment of Excise duty. As fullcost of transportation of inputswas not reimbursed, thedepartment wanted to add thatalso in value. Even when noone appeared for the assessee,the Tribunal renders justice byholding that duty cannot belevied beyond transactionvalue.
1SRI SAI ELECTRICALS 2021 (1)TMI 308 – MADRAS HCMismatch of ITC availed andreversal of ITC under TN VATAct. When discrepancy is notedwhile comparing the returnwith that of the figuresavailable with the Departmentin their web portal, thereshould be an exercise carriedout by the department withinits level before calling upon thedealer to show cause.
2SPM TEXTILES PVT LTD 2021 (1)TMI 250 – MADRAS HCThe stand of the AssessingAuthorities that the benefit ofthe decision in M/s RamcoCements Ltd for issuance of CForm for purchase of Diesel canbe extended only to thosedealers who are party to thedecision is unacceptable as itsan decision in rem, applicableto all dealers who seek benefitthereunder.
SVLDRS is a tax relief schemegranting substantial rights.Declaration cannot be rejectedon technical grounds.
1SAI BALAJI SPONGE IRONINDIA PVT. LTD. 2021 (1) TMI67 - ANDHRA PRADESH HIGHCOURTA liberal interpretation has tobe given to the SVLDRS, 2019.The stance of the respondentsthat on a technicality ofpayment under a separatehead, the compensationpayable by the insurancecompany would not beadjusted against the duesunder the scheme, is not inaccordance with the purposeand intent of the scheme.
2K N RAI VS UOI 2021-TIOL-66-HC-MUM
Petitioner admitted tax liabilityin the Statement given before30.06.2019. SVLDRSdeclaration cannot berejected, as quantification byassessee is also permitted.
CASE LAWS
4LANDMARK ASSOCIATES2021-TIOL-93-HC-MUMBAI
SVLDRS - interpretation of“quantified on or before30.06.19”
A scheme to endlitigations generatingmore litigations!
